SpaceX’s upcoming Nasdaq debut at a $1.75 trillion valuation may trigger inclusion in the Nasdaq-100 index within weeks.
SpaceX will begin trading on the Nasdaq this week under the ticker SPCX, starting at a $1.75 trillion valuation. The company’s size positions it for potential inclusion in the Nasdaq-100 index, tracked by the Invesco QQQ Trust (QQQ), after 15 trading days under revised rules.
The Invesco QQQ Trust has risen 17% year-to-date, outperforming the S&P 500’s 8% gain. However, the ETF’s price-to-earnings ratio stands at 36, raising concerns about elevated valuations if unprofitable SpaceX joins the index.
Analysts note the move could amplify volatility for QQQ investors, given SpaceX’s growth profile and lack of profitability in the near term.